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HomeBusiness Loan
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Fuel Your Business
Growth with Loans
from ₹50,000 to ₹5 Crore

Unsecured business loans, working capital, MSME loans, Mudra Yojana, machinery finance — compare 25+ banks and NBFCs. Get pre-approved in 24 hours. 100% free service.

10.5%
Starting Rate p.a.
₹5 Crore
Max Loan Amount
24 Hrs
Pre-Approval
Nil
Collateral (CGTMSE)
5 Yrs
Max Tenure
Quick Loan Enquiry
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25+
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10.5%
Lowest Rate p.a.
24 Hrs
Pre-Approval
Minimal
Documentation
Nil Collateral
CGTMSE & Mudra
₹0
Service Charge
Loan Types

8 Types of Business Loans — Pick the Right One

Every business has different financing needs. From working capital to machinery to startup funding — we have the right loan for you.


💼Term LoanFixed repayment
💰Working CapitalDaily operations
🏭MSME / SMESmall business
⚙️Machinery LoanEquipment finance
🔄Overdraft / CCFlexible credit
📄Invoice DiscountingReceivables finance
🚀Startup LoanNew businesses
👩‍💼Women / SC-STSpecial schemes
Most Popular

Business Term Loan — Lump Sum for Any Business Purpose

Get a one-time lump sum amount repaid in fixed monthly EMIs over 1–5 years. Perfect for business expansion, purchasing inventory, opening a new branch, or any significant one-time expense.

₹1L – ₹5 Crore
Loan amount
10.5% – 24% p.a.
Depending on profile
12 – 60 months
Flexible tenure
Unsecured upto ₹2Cr
Via CGTMSE guarantee
Business expansion — new branch, factory, warehouse, retail store
Inventory/stock purchase for peak season demand
Marketing, advertising, brand building campaigns
Technology upgrade — ERP, software, hardware, IT systems
Available for sole proprietors, partnerships, Pvt. Ltd., LLPs
Interest Rate Range
Bank (CIBIL 750+)
10.5% – 14%
SBI | HDFC | ICICI | PNB
NBFC / Fintech (Fast Approval)
16% – 24%
Bajaj Finserv | LendingKart | Tata Capital
Key Specifications
Min Business Age2 years (3 yrs for banks)
Min Annual Turnover₹10 Lakh+
CIBIL Score700+ ideal
Processing Fee1–2% of loan amount
CollateralOptional (CGTMSE cover)
Short-Term

Working Capital Loan — Keep Your Business Running Smoothly

Short-term funding to manage day-to-day operations — paying salaries, buying raw materials, managing receivables gap, stocking inventory during lean seasons.

₹1L – ₹2 Crore
Short-term funding
12% – 22% p.a.
Annual interest rate
3 – 24 months
Short tenure
24–48 Hours
Disbursal time
Salary disbursement and employee expense management
Raw material purchase before bulk orders
Bridge the gap between invoicing and payment collection
Seasonal businesses — stock up before festivals/peak season
Types of Working Capital Finance
Cash Credit (CC)Revolving limit, pay on use
Bank Overdraft (OD)Against current account
Invoice DiscountingAdvance against receivables
Supply Chain FinanceAgainst purchase orders
Eligibility Snapshot
Business vintage: Min 1 year
GST filing for 1+ years
Bank statement turnover aligns with required loan
No active defaults or write-offs
MSME Special

MSME / SME Loan — Specially Designed for Small Businesses

Udyam-registered businesses get special MSME loans with lower rates (8–14%), collateral-free options under CGTMSE, priority sector lending benefits, and government subsidies.

₹50K – ₹10 Crore
Micro to medium
8.5% – 16% p.a.
Lower than regular loans
Udyam Registration
Key eligibility doc
Collateral-Free
CGTMSE up to ₹2 Crore
Udyam-registered Micro, Small, Medium businesses
CGTMSE coverage — no collateral up to ₹2 Crore
PSB Loans in 59 Minutes — in-principle in 1 hour
SC/ST/Women get additional 10% subsidy
MSME Definition (Udyam)
Micro EnterpriseInvest ≤₹1Cr | Turnover ≤₹5Cr
Small EnterpriseInvest ≤₹10Cr | Turnover ≤₹50Cr
Medium EnterpriseInvest ≤₹50Cr | Turnover ≤₹250Cr
CGTMSE CoverUp to ₹2 Crore collateral-free
Key Benefits
Lower interest: 8.5% vs 14–24% regular
No collateral up to ₹2 Crore (CGTMSE)
Faster processing — priority sector quota
Register free at udyamregistration.gov.in
Asset Finance

Machinery & Equipment Loan — Finance Your Production Assets

Finance manufacturing machinery, industrial equipment, medical equipment, or any capital asset. The machine itself serves as collateral — no additional security needed.

Up to ₹10 Crore
Based on machine value
9.5% – 15% p.a.
Lower (secured asset)
Up to 7 years
Longer tenure
80–90% LTV
Of machine cost
CNC machines, industrial automation equipment
Medical/dental equipment, lab instruments
Food processing, packaging machinery
New AND used machines eligible (age ≤10 years)
CLCSS: 15% capital subsidy for MSMEs
CLCSS Scheme Bonus
Scheme NameCredit Linked Capital Subsidy
Subsidy Amount15% of machinery cost
Maximum Subsidy₹15 Lakh per unit
Eligible Sectors35 industries listed by MSME
Apply ThroughSIDBI / designated banks
Revolving Credit

Business Overdraft / Cash Credit — Flexible Revolving Credit Line

Unlike a term loan, an overdraft or cash credit is revolving — withdraw as needed, repay, withdraw again. Interest charged ONLY on the amount used, not the entire sanctioned limit.

₹1L – ₹10 Crore
Revolving limit
10% – 16% p.a.
On utilized amount only
12-month Renewal
Annual limit review
Against Collateral
Property / FD / Stocks
Pay interest only on money actually used
Withdraw and repay multiple times
Ideal for textile traders, distributors, manufacturers
No fixed EMI — repay as per your cash flow
OD vs CC — Key Difference
Cash Credit (CC)Against stock/debtors
OD Against Property60–70% of property value
OD Against FD85–90% of FD amount
Drawing Power75% stock + 70% debtors
RenewalAnnual review every 12 months
Receivables Finance

Invoice Discounting — Cash Against Pending Invoices

Waiting 30–90 days for your large buyers to pay? Get up to 90% of your invoice value instantly. Perfect for B2B businesses supplying to corporates, PSUs, or government.

₹5L – ₹50 Crore
80–90% of invoice value
12% – 18% p.a.
On disbursed amount
7–90 Days
Invoice tenure
Invoice as collateral
No extra security
Suppliers to large corporates, PSUs, government departments
TReDS (SIDBI platform) for MSMEs
Digital platforms: M1xchange, Invoicemart, RXIL
Balance 10% released after buyer payment
How Invoice Discounting Works
Step 1Upload invoice to lender
Step 2Get 80–90% advance in 24 hrs
Step 3Buyer pays on due date
Step 4Balance 10% released to you
New Business

Startup Loan — Launch Your Business with Confidence

New business with less than 1–2 years of operations? Government schemes (Mudra, PMEGP, Stand Up India), NBFCs, and fintech lenders are designed exactly for startups.

₹50K – ₹1 Crore
Based on scheme
7.5% – 20% p.a.
Govt schemes lowest
Business Plan Needed
Project report / proposal
Collateral-Free
Under Mudra / PMEGP
Mudra Shishu (₹50K) and Kishore (₹5L) — collateral free
PMEGP: 15–35% margin money subsidy for new units
Stand Up India: ₹10L–₹1 Crore for SC/ST/Women
Fintech lenders: 6-month bank statements sufficient
Government Startup Schemes
Mudra ShishuUp to ₹50,000 | Zero collateral
Mudra Kishore₹50K–₹5L | Low rate
PMEGP Subsidy15–35% margin money grant
Stand Up India₹10L–₹1Cr (SC/ST/Women)
SIDBI SMILE₹10L–₹25L | New micro units
Special Category

Women & SC/ST Special Business Loans — Extra Benefits for You

Multiple exclusive schemes offering lower rates, higher subsidies, and collateral-free loans for women entrepreneurs, Scheduled Caste, and Scheduled Tribe business owners.

Women Exclusive
Stree Shakti, Mahila Udyam
Stand Up India
₹10L–₹1Cr SC/ST/Women
Extra 0.25–0.5%
Rate concession
Higher Subsidy
Up to 35% under PMEGP
SBI Stree Shakti Package: 0.5% rate concession
Stand Up India: ₹10L–₹1Cr for greenfield enterprise
PMEGP: Urban women 25%, Rural 35% subsidy
Cent Kalyani (Central Bank): Collateral-free up to ₹1 Crore
Key Schemes for Women
SBI Stree Shakti0.5% rate off | No collateral ≤₹5L
Cent KalyaniNo collateral up to ₹1 Crore
Stand Up India₹10L–₹1Cr greenfield only
PMEGP Women25–35% margin money subsidy
SC / ST Benefits
Stand Up India — guaranteed 1 per branch
PMEGP SC/ST: 35% rural, 25% urban subsidy
NSIC subsidy on raw materials and marketing
Priority allocation under CGTMSE coverage
Lender Comparison

Compare Business Loan Rates — Banks vs NBFCs

Rates vary widely. Banks offer lower rates (10–16%) for established businesses; NBFCs offer faster approvals at higher rates (16–36%).

LenderInterest RateMax LoanMax TenureProcessing FeeCollateralSpecial FeatureApply
SBI
SBI (MSME Loan)
Public Sector Bank
10.5% p.a.₹5 Crore5 years0.35–1%CGTMSE / Optional🏆 PSB 59-min portal
PNB
Punjab National Bank
Public Sector Bank
10.75% p.a.₹5 Crore5 years0.5%CGTMSE / OptionalWomen 0.25% extra off
HDFC
HDFC Bank
Private Sector Bank
11% – 14%₹40 Lakh4 yearsUp to 2.5%No (Unsecured)⚡ 24-hr disbursal
ICICI
ICICI Bank
Private Sector Bank
11.25% – 16%₹75 Lakh5 yearsUp to 2%No (Unsecured)iLend — fully digital
Axis
Axis Bank
Private Sector Bank
12% – 18%₹50 Lakh5 years1.5–2%NoUnsecured | GST-based
Bajaj
Bajaj Finserv
NBFC — Fast Disbursal
14% – 26%₹80 Lakh7 years1–3%No (Unsecured)Flexi Loan — revolving
LK
LendingKart
Fintech NBFC
18% – 24%₹2 Crore3 years2–3%NoGST+bank stmt only
SIDBI
SIDBI Direct
Govt Development Bank
9% – 12%₹25 Crore10 years0.25–1%Optional🌟 MSME focused | Best rates

Rates as of 2026. Actual rate depends on CIBIL score, business vintage, turnover, and loan amount.

EMI Calculator

Plan Your Business Loan EMI Precisely

Calculate your exact monthly payment before applying. Understand total interest cost and plan repayment strategy.

Lower CIBIL = Higher Rate

A CIBIL score of 750+ can save you 3–5% on interest — that's ₹3–6L on a ₹25L loan!

Shorter Tenure = Less Interest

A 3-year loan costs far less total interest than a 5-year loan.

NBFC vs Bank Tradeoff

Banks: 10–14% but 5–10 days. NBFCs: 18–26% but 24 hours.

Business Loan EMI Calculator
Loan Amount₹25 Lakh
Interest Rate14.00% p.a.
Loan Tenure36 Months
Lender Type
Processing Fee %
Monthly EMI
₹85,421
₹25L
Principal
₹5.75L
Total Interest
₹30.75L
Total Amount
₹25K
Processing Fee
14%
Effective Rate
₹31L
Grand Total
Eligibility

Business Loan Eligibility Criteria

Banks evaluate your business through multiple lenses. Understanding these helps you prepare better and get approved faster.

Business Vintage (2–3 Years Min)
Banks need at least 2 years of business operations (3 years for term loans). NBFCs accept 1 year. Startups should use govt schemes.
Annual Turnover (₹10L+ for banks)
Banks typically need ₹10L+ annual turnover. Reflected in GST returns and bank statement credits. NBFCs accept lower turnover.
CIBIL Score — Both Business & Personal
Banks check BOTH your business CIBIL and your personal score as guarantor. 700+ personal score is essential.
Profitability — ITR & P&L Account
Business must show profitability in at least 1–2 years of ITR. Loss-making businesses get rejected.
Banking Health (Bank Statement)
6–12 months bank statement is critical. Banks look at average balance, monthly credits, cheque bounces, and EMI payments.
Business Loan Eligibility Calculator
Get instant estimate based on your business profile
Monthly Business Turnover (Avg Credit in Bank A/C)
Business Vintage
CIBIL Score
Business Type
Profitability
Existing EMIs per month
✅ Your Estimated Business Loan Eligibility
₹ —
Monthly EMI Capacity
Recommended Lender
Suggested Rate
Documents Needed
Government Schemes

6 Powerful Government Business Loan Schemes for You

India's government offers incredible subsidized loan schemes for small businesses. Most people don't know about these — you do now!

Most Popular
💳
CGTMSE — Collateral-Free Loans
Banks get RBI/Govt guarantee — they lend to you without collateral. No mortgage, no property pledge. Up to ₹2 Crore fully unsecured.
Up to ₹2 Crore — Zero Collateral
Annual Guarantee Fee: 0.37–1.35%
Available at all major PSU banks
Micro Enterprises
🌱
PMMY / Mudra Yojana
4 categories: Shishu (₹50K), Kishore (₹5L), Tarun (₹10L), Tarun Plus (₹20L). Zero collateral. Apply at any bank or via JanSamarth portal.
Up to ₹20 Lakh | No Collateral
Apply at jansamarth.in portal
Women get extra 25bps rate cut
New Enterprise
🏭
PMEGP — 15–35% Subsidy Grant
Prime Minister's Employment Generation Programme. Grants 15–35% of project cost as subsidy (non-refundable!) for new manufacturing or service businesses.
15–35% Project Cost as Free Subsidy!
Project up to ₹50L (Mfg), ₹20L (Service)
Apply at kviconline.gov.in
SC/ST/Women Only
🌟
Stand Up India Scheme
One loan per SC, one per ST, and one per Women entrepreneur per bank branch. For greenfield (new) enterprises only. ₹10 Lakh to ₹1 Crore.
₹10L – ₹1 Crore per bank branch
SC, ST entrepreneurs & Women only
New businesses (greenfield) only
Development Bank
🏦
SIDBI — Best Rates for MSMEs
India's dedicated development bank for MSMEs. Best rates (9–12%), longest tenures (10 years), and SMILE, SPEED schemes. Apply at sidbi.in.
9–12% p.a. — Lowest Business Loan Rate
Up to 10 year tenure
Apply at sidbi.in
Machinery Upgrade
⚙️
CLCSS — 15% Capital Subsidy
Credit Linked Capital Subsidy Scheme. Get 15% upfront capital subsidy (up to ₹15L) on purchase of proven technologies for MSMEs across 35 identified sectors.
15% Subsidy = up to ₹15 Lakh FREE
35 eligible manufacturing sectors
Apply via clcss.dcmsme.gov.in
Govt Scheme Deep Dive

Mudra Yojana — 4 Categories for Every Stage

Pradhan Mantri MUDRA Yojana (PMMY) — launched 2015, collateral-free loans up to ₹20 Lakh for non-farm micro businesses. 6.3 crore+ loans worth ₹4.5 lakh crore disbursed in FY23 alone.

Shishu
🌱
Shishu
Up to ₹50,000
Starting your first business. Vendors, street food, tailors, repairmen, home-based units.
Kishore
🌿
Kishore
₹50K – ₹5 Lakh
Grow your existing micro business. Equipment, operations expansion, trading or services.
Tarun
🌳
Tarun
₹5L – ₹10 Lakh
Scale a well-established micro business. Proven model, growth capital needed.
TarunPlus
🚀
Tarun Plus
₹10L – ₹20 Lakh
NEW (Oct 2024). For businesses that have repaid Tarun loans. Higher cap for proven borrowers.
💳
Apply for Mudra Loan — Free
Apply at any bank or via JanSamarth portal | Zero Collateral | 7–15 Working Days
1

Choose Your Category

Shishu (₹50K), Kishore (₹5L), Tarun (₹10L), TarunPlus (₹20L)

2

Prepare Documents

KYC, Aadhaar, PAN, photos, business proof, bank statements, address proof

3

Fill Application Online or Offline

jansamarth.in for online. Or visit nearest bank with physical form.

4

Bank Verifies & Approves

7–15 working days. Bank may visit business premises for field verification.

5

Receive Mudra Card + Amount

Get Mudra Debit Card for working capital. Term loan disbursed directly to account.

Pro Tip: Approach a bank where you already have a current/savings account — they can verify your transaction history and approve faster. Also register on Udyam Portal first — it significantly improves approval chances.
Coverage

What Business Loan Covers vs Doesn't Cover

✅ Banks Will Finance
Approved business purposes
Business expansion — new branch, locationOpening new outlet, warehouse, showroom
Machinery & equipment purchaseManufacturing, medical, commercial machinery
Working capital — inventory, salaries, billsDay-to-day operational needs
Technology upgrade — software, hardware, ITERP systems, computers, automation
Receivables discounting — invoice financeB2B outstanding invoice advances
Franchise fee — buy into established brandFood chains, service franchises
❌ Not Covered (Rejections)
These uses will get you rejected
Personal use / lifestyle expensesCar, home renovation, personal travel
Speculative activities — stocks, real estate tradingCannot be used for financial market speculation
Agricultural farming / land purchaseUse Kisan Credit Card or agri loans instead
Businesses banned by lawIllegal trade, banned substances, restricted activities
Paying dividends or promoter salariesCannot use to pay promoter personal draws
Companies with ongoing litigation / fraud flagsActive court cases or CIBIL defaulter status
Loan Process

Business Loan Approval — 6 Steps

From application to disbursement in as little as 24–72 hours (NBFC) or 5–10 working days (bank) with Car Spider's expert guidance.

Online Application
Fill our form. Our advisor calls within 30 minutes.
Document Collection
We prepare a custom checklist. Upload digitally or courier.
Credit Assessment
Bank checks CIBIL, ITR, bank statements, GST returns.
Business Verification
Field officer visits your business premises (bank loans).
Sanction Letter
Loan sanctioned! Review offer letter — amount, rate, tenure.
Disbursement 🎉
Amount credited to your business account. Start investing!
Documentation

Documents Required for Business Loan

KYC — Promoter Documents
All directors / partners / proprietor
Aadhaar Card (mandatory)
PAN Card (mandatory)
Passport / Voter ID / Driving Licence
Utility bill or rent agreement (address)
2 recent passport-sized photographs
Business Entity Documents
Proof of business existence
GST Registration Certificate (GSTIN)
Udyam Registration (for MSME schemes)
Business PAN card
Shop & Establishment licence
Partnership deed / MOA & AOA
Trade licence / FSSAI / sector licence
Financial Documents
Proof of income & profitability
ITR (Income Tax Returns) — last 2–3 years
CA-certified P&L + Balance Sheet
GST Returns (GSTR-1, GSTR-3B) — last 12 months
Bank statements — current account 12 months
Existing loan statements (if any)
Audited accounts (for loans above ₹25L)
For Machinery Loan
Equipment-specific documents
Quotation from machinery supplier
Pro forma invoice / purchase order
Technical specification sheet of machine
Age certificate (if used — must be ≤10 years)
For Secured Loan / OD Against Property
If offering property as collateral
Property ownership documents (title deed)
Property tax receipt (latest)
Encumbrance Certificate (last 15 years)
Building plan + approval
Valuation report (bank-empanelled valuer)
For Mudra / Startup Loan
Minimum documents for govt schemes
KYC documents (Aadhaar + PAN)
2 photos + address proof
Business plan / project report
Proof of business activity / customer order
Bank statement (3–6 months) if available
Supplier quotation (for machinery purchase)
Apply for Business Loan

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Fill this form and our business loan specialist will call you within 30 minutes. We compare 25+ banks and NBFCs, identify the right scheme for you, and guide you to approval — zero charges.

30-Minute Expert Callback

Dedicated business loan advisor — understands MSME, Mudra, CGTMSE, all schemes

CIBIL Protection Strategy

We pre-screen before submitting — no unnecessary hard enquiries that hurt your score

Govt Scheme Identification

We identify all subsidies and schemes you qualify for — most clients don't even know they're eligible

Zero Cost — Banks Pay Us

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Reference: BL-2026-XXXX
FAQ

Frequently Asked Questions — Business Loans

What is the minimum CIBIL score for a business loan?
Most banks require a minimum personal CIBIL score of 700 for unsecured business loans. Scores of 750+ get the best interest rates. For NBFC loans, 650+ is usually acceptable. Government schemes like Mudra and PMEGP have no minimum CIBIL requirement.
Can I get a business loan without collateral?
Yes! Multiple ways: (1) CGTMSE coverage — banks get govt guarantee, up to ₹2 Crore. (2) Mudra Yojana — up to ₹20 lakh, zero collateral. (3) NBFC unsecured loans — up to ₹75L-₹1Cr. (4) Stand Up India — up to ₹1 Crore for SC/ST/Women.
How quickly can I get a business loan approved?
Fintech NBFCs: 24–72 hours. Private banks (HDFC, ICICI): 3–5 working days. PSU banks (SBI, PNB): 7–15 working days. Mudra Loans: 7–15 working days. PSB 59-Min Portal: In-principle approval in 1 hour for up to ₹5 Crore!
What is CGTMSE and how does it help me?
CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) guarantees the loan on your behalf. The bank gets government backing, so they lend without collateral. You pay a small annual guarantee fee (0.37–1.35%). This is the most powerful tool for getting unsecured business loans up to ₹2 Crore.
What is the difference between Mudra loan and regular business loan?
Mudra loans: No collateral, ₹50K to ₹20 Lakh, simple documentation, available to new businesses. Regular business loans: Higher amounts (up to ₹5 Crore), longer tenures, but require business vintage, ITR, and sometimes collateral. Mudra is the gateway; regular BL is for growth stage.
My business is just 6 months old. Can I get a loan?
Banks typically don't lend to businesses under 1 year old. But strong options exist: Mudra Shishu (₹50K) and Kishore (₹5L), PMEGP for new manufacturing with 15–35% subsidy, Stand Up India for SC/ST/Women, NBFC/Fintech lenders after 6 months with GST proof.
What documents are mandatory for a business loan?
Minimum always required: Aadhaar + PAN of promoter, Business PAN, GST registration, 12-month bank statement, ITR for last 2 years with P&L + Balance Sheet. For MSME: Udyam registration. For Mudra: Just KYC + business plan + 6-month bank statement.
What is the PMEGP scheme and how much subsidy can I get?
PMEGP gives 15–35% of project cost as a FREE GRANT (non-refundable!). Urban General: 15% | Rural/Women/SC/ST: 25–35%. Project up to ₹50L (manufacturing). Apply at kviconline.gov.in. Our advisors help prepare your project report!

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👋 Hi! I'm your Car Spider Business Loan Advisor. How can I help you today?
I can help with: loan eligibility, interest rates, government schemes (Mudra, PMEGP, CGTMSE), required documents, and finding the best lender!